PRODUCT NAME:

“NESTLE INSTANT MILK’’

TABLE OF CONTENTS
 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
 MARKITING MIX
 PROBLEMS FACED BY NESTLE
 RECOMMENDATIONS
 SWOT ANALYSIS
 FUTURE OF NESTLE
 INTRODUCTION
Nestle, headquarters in Switzerland, was founded by Henri Nestle in 1866. It is
renowned as the world’s leading nutrition and health based company. Nestle grows is
product line through innovation as well as renovation and maintains a balance on its
geo-environmental activities and product lines. They opt for long term performance
rather than short term goals. The Company prioritizes in bringing the most relevant
products to the consumers according to their needs that will prove valuable
throughout their life.

PROBLEMS FACED BY NESTLE

The problems for Nestle in today’s world are the claims faced by it as being charged with
the responsibility of violating the “International Marketing Codes”. Nestle claims that I is
doing nothing wrong and unethical in the way it markets is baby foods around the world.
Baby milk action has raised the case of “SYED AAMAR RAZA” who has publicizes
evidence of Nestlé’s malpractice in Pakistan also as well. It has been claimed that
company marketing is causing unnecessary deaths and sufferings of babies, largely
among poor because they do not use the proper amount of powder in order to save some
volume for future use which causes great danger to baby life.

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 the 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

BOARD OF DIRECTORS
1. SYED YAWAR ALI (CHAIRMAN)
2. ROLAND DECORVET (M.D.)
3. FRITZ VAN DINK (DIRECTOR)
4. ROGER STELLER (DIRECTOR)
5. A. CANTACUZENE (DIRECTOR)
6. SYED BABAR ALI (DIRECTOR)
7. SYED HYDER ALI (DIRECTOR)

AUDIT COMMITTEE
• SYED HYDER ALI
• SYED BABAR ALI
• PETER WUETHRICH

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

IT’S CHIEF OBJECTIVES ARE:

• To achieve compatibility with international voluntary standards on Environmental
management systems.
• To build mutual trust with consumers, governmental authorities and Business
partners.
• To ensure continuous improvement of nestles environmental Performance.
• Conservation of natural resources and minimization of waste.
• Total compliance with the laws.
• To establish the benchmark for good business practice.
• Employing new technologies and processing.
• By committing to resources, both human and financial.
• Measuring the cost and benefits to business of its activities.
• Monitor progress.
 • Audit results.
• Review targets.

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 ratite, 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.

MARKET POSITION
UHT milk grew at a faster pace than the industry, mainly due to price stability and
aggressive media and non-media activities.
NESTLE Plain Yogurt was launched on November 1, 2000 in the biggest branded yogurt
market - Lahore, supported by a fully integrated marketing campaign. The product was
very well received by the consumers.
We continued to expand our water business. While NESTLE PURE LIFE retained its
significant market share in the retail sector, we launched the Jumbo Service (5-gallon
bottles for home and office consumption) in July 2000 in Lahore, thereby entering a very
promising market segment. The results are very positive and the market is developing fast

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.
RESEARCH & DEVELOPMENT
Nestle, the world's biggest food Group, is also the global leader in the industry with
regard to Research and Development (R&D), No other food company matches the R&D
presence of Nestle, with a worldwide network of centers in 17 locations on four
continents. No other food company dedicates so many human and financial resources to
R&D: an international staff of 3500 engaged in the search for innovative new products
and the renovation of existing ones. Year after year, Nestle invests some 800 million
Swiss francs into R&D as a major driving force of its double strategy: to strengthen the
Company's brands worldwide and to continue to support future long-term growth and
competitiveness through innovation and renovation. At the threshold of this new
millennium, Nestlé’s objective is to consolidate and strengthen its leading position at the
cutting edge of innovation in the food area, in order to meet the needs and desires of
consumers around the world, for pleasure, convenience, health and well being. In
addition, significant progress was achieved across the broad range of our business
activities such as Information systems, logistics, sales and distribution structure where
strong distribution and effective merchandising made a major contribution in achieving
the high rate of growth as mentioned above

MARKETING MIX
• Product
• Price
• Promotion
• Placement

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: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.
: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 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 salmentation but it was quickly taken into
notice and the problem was readily removed.
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.
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

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

PROMOTION
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.
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.
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.

PROBLEMS FACED BY NESTLE

The problems for Nestle in today’s world are the claims faced by it as being charged with
the responsibility of violating the “International Marketing Codes”. Nestle claims that I is
doing nothing wrong and unethical in the way it markets is baby foods around the world.
Baby milk action has raised the case of “SYED AAMAR RAZA” who has publicizes
evidence of Nestlé’s malpractice in Pakistan also as well. It has been claimed that
company marketing is causing unnecessary deaths and sufferings of babies, largely
among poor because they do not use the proper amount of powder in order to save some
volume for future use which causesgreat danger to baby life.

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

DISTRIBUTION STRATEGY
In Pakistan the ready stock from the company is distributed to the main distributors in each
big district of Pakistan. From the premises of the distributors the distributor distributes the
products to the retailers and leading whole sellers through the sales force hired by him.
Company unloads the stock at the premises of the distributor after receiving an advance bank
draft of the order along with the order sheet. For each category of the product the sales force
is divided in different groups.

PROMOTIONAL STRATEGY
1. Promotion refers to influencing people.
2. Does the promotion support the marketing objectives?
What is the reason of its success or failure?

SWOT ANALYSIS OF NESTLE

TABLE OF CONTENTS

STRENGTHS----------------- TO BUILD ON
WEAKNESESS--------------------- TO COVER ON
OPPORTUNITIES------- ------------------ TO CAPTURE
THREATS----------------------- TO DEFEND ON

THE REAL SWOT

SWOT as taught is today’s business schools is little more than Scientific Wild Ass Guess
(SWAGs) according to Canfield’s Professor Malcolm McDonald. He makes the point
that many threats are the same regardless of the business environment that is being
audited. For example, common-all-garden threats would include the weather,
competitors, changes in technology, regulation and deregulation, and the impacts of
competing countries. In strengths you’ll get good products – but that could mean
anything. Under weaknesses you get equally general and vacuous points such as the price
is too high. This type of SWOT analysis is too general and is not much use to marketing
managers. SWOT needs to be segment specific. SWOT should look at groups of
customers and their perception of your brand, what price they will pay, the place where
they buy it, the products that they buy and so on. Otherwise your SWOT analysis is
averaged and not specific. SWOT analysis should be focused upon a segment of the
market. Then you can ask – what are the Critical Success Factors (CSFs) that are pivotal
to the buyer decision process – in that segment? Then you need to weight the CSFs so
that you can separate those drivers that are most important. When considering strengths
and weaknesses, in true marketing fashion you need to take the consumers’ perspective
when completing the SWOT. You also must factor in the customers’ view of your
business in relation to the competition i.e. relative to competitors. So you can match key
CSFs to opportunities. You can rank those opportunities that are most profitable or
sustainable. Then you need to factor in the impact of threats. Finally you should dovetail
SWOT with the rest of your strategic thinking.
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.

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.

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

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 .
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.

CONCLUSIONS
Nestlé should consider decreasing costs that are incurred due to intensive distribution
that it takes up for the most of its products. For example, Nestlé Pure Life is found
even in outlets such as the “local khokhas” in Pakistan. Placing it here is not quite
beneficial as the poor localities can hardly afford to buy it. Therefore, the firm is
incurring cost without the sales being increased at this certain distribution channel.