Project Report

On

GLOBAL MARKETING
OF
NESTIE
Submitted by
Sabiha Shaukat
Sehrish Iqbal
Mariam Sohaib
Mahroo Nazar
BBA-V Semester
Session: 2013-2017

Dated: March 05, 2016

Department of Business Administration

Heritage International College Sargodha

 DEDICATION

We dedicate this effort to my parents and my teachers who have always prayed for over success and
have supported us in every stage of life and over teachers who have worked so hard on us.

ACKNOWLEDGEMENT

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First of all, we thank Almighty Allah, who has given us the courage to write on this
report. we also thank my respectable teacher Miss Zaibfor her generous initiation, co-operation and
coordination and the way she showed his concerns from the very beginning till the end. This project
provided us a golden opportunity to learn.

In this report we’ve tried to relate every thing that I thought wasnecessary. Though, it’s a bit difficult

to say anything about the perfection of the effort that I have made but let us hope that it finds its
place somewhere tomeet the required and expected criterion.

We are also indebted to the personsunder mentioned because with out

their help; we would not have been possible for us to achieve this practicalknowledge.

EXECUTIVE SUMMARY

Nestle has been serving this world for over one hundred and thirty years. It hasdifferentiateditself
through its high quality product mix andpositioneditself as health and Nutrition Company

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whiletargeting the health conscious people throughout the world. Nestle started its
operations in Pakistan back in1988, by acquiring a diary company MILKPAK LTD, when people
of Pakistan actually needed it.Since Pakistan is the fifth world’s largest milk producing country
therefore nestle deals mainly in dairy products. Moreover, it also sells juices, chocolates,
preparedfood like noodles, baby food, infant formula milk and breakfast cereals inPakistan.Nestle is
a low cost leader with its efficient operations hence it provides
itscustomers with high quality products and sells them at a premium price. Therefore, it is earning
good profits. Nestle has set its manufacturing plants at in Karachi, Lahore, Islamabad andKabirwala.
The milk processing plant at Kabirwala district is the Nestlé’s world largest milk processing plant.
When nestle introduced its products in Pakistan people were neither aware nor accustomed to them.
Therefore, nestle ran an extensive marketing campaign to educate people and create a need for its
products. Pakistan is a land where fresh eatables are readily available. Nestle should
sellthe same quality of products in Pakistan as it sells abroad. It should alsointroduce more brands in
Pakistani market which it offers in other markets of the world since consumers in Pakistan
arebecoming more demanding day by day

APPROVAL
I submitted my project of International Marketing on “Global Marketing Of Nestle” of a company,
after, getting it approved by the honorable principal and the respected teachers.

Principal

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 Sir RaoAdilMasood Khan
Signature: _______________________

Head of Business Department and Course Lecturer

Ma’am BinishKanwal
Signature: ___________________

Examination Controller
Ma’am ZaibZafar
Signature: __________________

TABLE OF CONTENTS

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 Contents Page Number
Chapter No. 1

History 8
Introduction 9
Mission 10
Vision 10
Goals 10
Chapter No. 2
Product mix 12
Chapter No. 3
SWOT Analysis of Domistic market 14
Swote analysis of Global market 16
Chapter No. 4
Market Mix 19
Chapter No. 5
Marketing startiges 21
Chapter No. 6
Human Resoures Policy 23
Chapter No. 7
Pest Analysis 25
Chapter No. 8
Conclusion 25
Chapter No. 9
RECOMMENDATIONS 27
Chapter No. 10
References 29

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 Chapter # 01

Introduction of Organization

HISTORY
National Bank of Pakistan (NBP) is one of the largest commercial bank operating in Pakistan. It has
redefined its role and has moved from a public sector organization into a modern commercial bank.
While it continues to act as trustee of public funds and as the agent to the State Bank of Pakistan.it
has diversified its business portfolio and is today a major lead player in the debt equity market,
corporate investment banking, retail and consumer banking, agricultural financing, treasury services
and is showing growing interest in promoting and developing the country’s small and at the same
time fulfilling its social responsibilities, as a corporate citizen. NBP headquarters in Karachi,

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Pakistan with over 1,280 branches country wide (in December 2012). The bank provides both
commercial and public sector banking services.

The Bank's services are available to individuals, corporate entities and government. While it
continues to act as trustee of public funds and as the agent to the State Bank of Pakistan. In today's
competitive business environment, NBP needed to redefine its role and shed the public sector bank
image, for a modern commercial bank. It has offloaded 23.2 percent share in the stock market, and
while it has not been completely privatized like the other three public sector banks, partial
privatization has taken place. It is now listed on the Karachi Stock Exchange.

National Bank of Pakistan has segments of the population. These include NBP Karobar, NBP
Advance Salary, NBP Saiban, NBP Kisan Dost, and NBP Cash n Gold developed a wide range of
consumer products, to enhance business and cater to the different segments of society. Some
schemes have been specifically designed for the low to middle income

It has implemented special credit schemes like small finance for agriculture, business and industries,
administrator to Qarz-e-Hasna loans to students, self-employment scheme for unemployed persons,
public transport scheme. The Bank has expanded its range of products and services to include
Shariah Compliant Islamic Banking products. NBP recently initiated the Annual Awards for
Excellence in Literature. NBP will confer annual awards to the best books in Urdu and in all
prominent regional languages published during the defined period. Patronage from NBP would help
creative work in the field of literature. The Bank is also the largest sponsor of sports in Pakistan. It
has provided generously to philanthropic causes whenever the need arose.

It has taken various measures to facilitate overseas Pakistanis to send their remittances in a
convenient and efficient manner. In 2002 the Bank signed an agreement with Western Union for
expanding the base for documented remittances. More recently it has started Electronic Home
Remittances Project. National Bank of Pakistan has built an extensive branch network with 1250
branches in Pakistan and operates in major business centre abroad. The Bank has representative
offices in Beijing, Tashkent, Chicago and Toronto. It has agency arrangements with more than 3000
correspondent banks worldwide.

INTRODUCTION

Nestle SA , the world’s leading food manufacturer and the market leader in bothcoffee and mineral
water, produces a wind range of products including prepared dishesand cooking aids, milk-based
products, cereals, instant coffee, pharmaceuticals andbaby foods. Nestle SA is a publicly owned
company, with subsidiaries across the world.It website addresses in 104 countries. It is also the world
largest food and beveragecompany with $71 billion in annual sales and almost 230,000 employees
around theworld. It markets some 8000 brands that include instant coffee.Remarkably, its products
are sold in every country in the world, including in NorthKorea.Nestle coat of arms, the bird’s nest,
which refers to his name, has become asymbol for the products being a safe care for their consumer

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product safety and quality.Research and development based innovation capacity and strong brands
are priority for Nestle.

VISION
Nestion aim is to meet the various needs of the consumer everyday by marketing and selling foods
of a consistently high quality.

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 MISSION
To become an inspiring growth partner that delivers creative, branded food and beverages Solutions
enabling operators to innovate and delight our customer.

GOALS
Nestle business objective is to manufacture and market its products in a waythat creates value that
can be sustained over the long term for shareholders, employees,consumers, business partners and
national economies in which Nestlé operates”.The aim of the creating values for the company
include with improve business conditionfor the firm. To obtain more reliable and high qualify source
of raw materials, improvedgovernment functioning and regulatory, employed skill and loyal
workforce and superior quality products which successfully complete

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 Chapter # 02

Product Mix

PRODUCT MIX

 Baby Foods
 Bottled wate
 Cereals
 Chocolate & confectionery
 Coffee
 Dairy
 Dirnks

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 Petcare
 Ice cream
 Food Servies

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 Chapter # 03

Swot Analysis

SWOT ANALYSIS of DOMISTIC MARKET

Strengths

Focusing only on chocolate energydrink.

* Unique selling point.

* Big sales in other countries.

* Part of Nestle (reputation) fundsavailable for re-launch.

* It is available in different sizes, shapesand type

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.* Value for money.

* Promotion/advertising done in other countries.

* Widely available

Weakness
* Not enough diversity in flavors

* Packaging (design of tin + labeling)

Opportunities

* Increased media available(mobiles/internet)

* Increased fitness industry

* Increase awareness of healthandfitness

* Sponsorship (through sporting events)

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Threat

* Competitors (hot chocolate, energydrinks)

* Well known successful brands ascompetitors

* Competitors could use aggressivemarketing tactics cut prices/increasepromotion

* Competitors bring out similar products

* Competitors have diversity inpackaging (bottles, pouches, cans, etc)

SWOT ANALYSIS of GLOBAL MARKET

Strengths
 Nestle is a highly-diversified company operating in many different markets and sectors of
those markets.
 The variety of brands gives Nestle a strong ability to weather economics because it serves
many different segments of the market.
 It has well-established relationships with other powerful brands, including Coca-Cola,
Colgate Palmolive and General Mills.
 Nestle owns some of the world’s most recognized and trusted brands. Some families have
used its products for generations. Gerber has historically been one of the most trusted brands of
baby food in the United States.

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 It has strong research and development capabilities that are growing.
 Nestle has strong relationships with retailers.
 It includes well-established brands with a large amount of market share in some of the largest
national economies, including Europe and the United States.

Weaknesses
 Much of its sales depend upon a few well-recognized brands. This makes the company
vulnerable to any sudden changes in consumer behavior.
 Grocery sales in some major markets are increasingly concentrated in the hands of a few
giant retailers such as Walmart and Kroger in the United States and Tesco in the United
Kingdom. These companies have the ability to force sharp reductions in price. Some of these
retailers are intent on supplementing name brand products with more-profitable house brands.
 Some of its brands, such as Carnation milk, are not tailored to modern lifestyles and are seen
as old-fashioned by some customers.
 The company is heavily dependent upon advertising to shape consumer opinion and drive
traditional sales. This can lead to high marketing costs with a questionable return on investment.
 There is a high cost for launching new brands to supplement older, less-fashionable food
products.

Opportunities

 Growth in online retail could open up new distribution channels such as Amazon Prime that
can bypass traditional retailers.
 Growing middle classes in nations such as China and India create larger and broader markets
for Nestle’s products.
 Increased disposable income in countries like China could increase the demand for luxury
items like bottled water, ice cream and pet food.
 Changes in lifestyle, such as longer work hours, more women in the workforce, and more
single-person households, increase the demand for prepackaged foods.

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 Increased mobility and car ownership increase the demand for candy, bottled water and snack
foods in nations like China.
 Increased interest in health and nutrition could increase demand for some Nestle products,
such as energy drinks.

Threats
 Retailers such as Walmart, Kroger and Aldi are increasingly promoting house brands, which
are more profitable for them. House brands are often sold at a lower price and given greater
visibility on shelves. Some retailers such as Aldi and Trader Joe’s emphasize house brands at
the expense of traditional products.
 There is pressure from large retailers such as Walmart to cut prices.
 The growing use of new retail channels such as Amazon Prime and dollar stores may not
favor traditional retail products.
 They have experienced disruption of the traditional grocery industry in countries like
the States by new players such as Whole Foods Market and online retailers.
 There is a growing ineffectiveness of traditional advertising as new technologies such as
streaming video supplant traditional broadcast and print media.

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 Chapter # 04

Marketing mix 4p’s

MARKETING MIX 4p’s

Product

 Product is something that is offered to the market

 Nestle sale,pure,refreshing and healthy water is the product of nestle.
 Recently it has offered a0.25 liter bottle of NPL in the market
 Nestle people say: “Quality is our more successful product and it is key to our success today
and tomorrow.”

Price

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The company uses many pricing strategies. The cost of production, which stands at the base of all
pricing strategy, is well reflected in Nestle Pure Life price. Its rather higher price relative to other
bottled waters can be explained using the Pricing Strategies Matrix. Since the quality of Nestle Pure
Life is very high both from the Company’s and the consumers’ perspective, the high price justifies
itself

Place
With a headquarter in Tashkent and a production cite in Namangan, Nestle Pure Life is present in all
twelve regions of Uzbekistan.

Promotion

The Company recognizes the importance of continuous presence in promotion activities.

Consequently, Nestle Pure Life is well promoted in major cities of Uzbekistan. Currently, the
company is actively involved in sponsorship of educational and sports activities. In particular, the
company sponsors Youth Pakhtakor, a young football team, and the friendly meetings or
competitions of that team. Furthermore, outdoor posters and banners, references in movies and
articles have made tens of thousands of people subconsciously aware of Nestle Pure Life (and other
Nestle products).

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 Chapter # 05

Marketing startiges

MARKETING STARTIGES
For each target market, management must design a Marketing strategy, which includes thedesigning
of the marketing mix. The Marketing Mix is the combination of multiple aspectsof the following four
elements: a product, how it is distributed and promoted, and its price.These four elements are
intended to please the target market(s) and, equally importantorganization marketing objectives.The
Company's strategy is guided by several fundamental principles. Nestlé's existingproducts grow
through innovation and renovation while maintaining a balance ingeographic activities and product
lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is
to bring the best and most relevant productsto people, wherever they are, whatever their needs,
throughout their lives

Nestlé is committed to the following Business objectives in all countries, taking into accountlocal
legislation, cultural and religious practices:
 Nestlé's business objective is to manufacture and market the Company's products insuch a
way as to create value that can be sustained over the long term for shareholders,employees,
consumers, and business partners.
 Nestlé does not favor short-term profit at the expense of successful long-term business
development.

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 Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior,
beliefs and actions of the Company behind brands in which they place theirtrust, and that
without its consumers the Company would not exist.
 Nestlé continues to maintain its commitment to follow and respect all applicablelocal laws in
each of its markets

Chapter # 06

Human Resoures Policy

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 HUMAN RESOURCES POLICY
 The long-term success of the Company depends on its capacity to attract, retain and develop
employees able to ensure its growth on a continuing basis. This is a primary responsibility for
all managers.
 The Nestlé policy is to hire staff with personal attitudes and professional skills enabling them
to develop a long-term relationship with the Company.
 Therefore the potential for professional development is an essential standard for recruitment.
 Each new member joining Nestlé is to become a participant in developing a sustainable
quality culture which implies a commitment to the organisation and a sense for continuous
improvement leaving no room for complacency.
 Therefore, and in view of the importance of these Nestlé values, special attention will be paid
to the matching between a candidate's values and the Company culture.

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 Chapter # 07

PEST Analysis

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 PEST ANALYSIS

Political
 “We have made significant change to improve our products’ profile to complement the
Government’s efforts to create a healthier population.”
 Nestle is one of the big companies which is totally supporter of the Government’s works to
stimulate healthier diets and lifestyles to help problems related with obesity, diabetes, etc.

ECONOMIC
 Billionaire brands enhance organic growth globally
  Nestle is one of the leading companies in fast moving consumption sector in the world
economy.
  “We are often the main local tax and job provider; we are often the primary economic outlet
for local suppliers and service providers. This creates an obvious social and economic
responsibility that goes far beyond our employees and their families, and relates to the overall
well-being and prosperity of these communities.”
  “If we are to maintain a strong and healthy future for our Nescafé and Nespresso business
lines, we need to ensure the supply of quality coffee now and in the future. We therefore
work to ensure that our work with farmers: to help them for increasing yields utilizing the
same amount of land that is under coffee cultivation and to diversify their activities, giving
them higher incomes and improving their living standards.”
  Nestle provides economy with a reliable supply of high-quality raw materials and they bring
sustained growth for the local economy.

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  They contribute to improvements in agricultural production, the social and economic status of
farmers, rural communities and in production systems to make them more environmentally
sustainable.

TECHNOLOGY
 All of Nestle products undergo as extensive R&D process and a strict quality standard before
it is launched.
 Nestle benefits from world-class manufacturing facilities, best private R&D capability in
food and nutrition, international quality and safety standards.
 Nestle company innovates & renovates nutritious and healthier products using R&D
expertise.

SOCIAL
 Although Nestle is a global brand, Nescafe is locally produced to meet the taste options of
local consumers.
 Nestle Company has begun to greenwash itself, releasing reports regarding its decreased
carbon emissions and water withdrawal over last decade.
  “Our core aim is to enhance the quality of consumers’ lives every day, everywhere by
offering tastier and healthier food  and beverage choices and encouraging a healthy
lifestyle.” We believe we can make an important contribution to society,  by going a step
beyond corporate social responsibility to create value through our core business both for our
shareholders and society. We prioritize the areas of nutrition, water and rural development to
create shared value; this  requires long term thinking…“
 Nestle Company applies their strong values and principles everywhere they operate. Their
overriding target is to ensure that their invesments are beneficial, both for their shareholders
and people in the countries where they do business.

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 Chapter # 08

Conclusion

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 CONCLUSION

 As the conlusion, we belive that the best way to research Nestle strategy in Malaysia is to try and
coctact Nestle and perhaps, brief interviewshould conduct with the global brand such as Nestle, I
think wider marketing strategy is universal across theglobe.But again we think it is differs from one
region to another. Nestle is a brand,brand name for the company and family name for all nestle
products in the market. It isalso an umbrella name for, for instance Nestle Milo or Nestle Nescafe.
Unlike P&G or Uniliver, Nestle shares its name with all its products, like Maggi for example. This
isinstance part of their branding and their wider marketing strategy.Nestle also is a product for
everyone which suitable for all income level since theprice that set by the company is affordable and
perhaps, cheap. It is very competitivesince the price is high in quality and most of the consumer does
not thinking too muchabout the price.The marketing channels that have been used by Nestle to
distributed Milo arealso one of the key successes of the product. The efficiency and high frequency
indistributing Milo nationwide has been a convenience for consumer since they can buy iteasily at
any store such as Mydin Mart, Carrefour and any convenience
shop.Although Nestle Milo is very established in Malaysia which 90% Malaysianconsumer Milo, but
Nestle never take it for granted. Nestle push their R&D team in order to make sure the product is up
to date and attractive to stand out from competitor. Nestlealso never run out of idea and they always
introduce new Milo product for the customer convenience.

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 Chapter # 09

Recommendations

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 RECOMMENDATIONS

 KEEP THE TASTE NICE

 INCREASE ADVERTISING & SHOW YOUR COMPETITIVE EDGE
 INCREASE LOYALITY OF CUSTOMER WITH BRAND THROUGH ATTRACTIVE
PACKAGES
 KEEP THE PRICE LOW,BECAUSE THE DAY WHEN PRICE WILL COMPETITOR
WILL BE VERY NEAR TO YOUR PRICE YOUR SALES WILL BE BOOST UP.
 INCREASE ITS DITRIBUTION NETWORK
 TRY TO GET MORE & MORE PARTY ORDERS
 GIVE KEEN INTEREST TO CRM
 INCREASE INCENTIVES & PROMOTIONAL ACTIVITIES
 More focus on C & D Class Shops by revisiting Shop wise data.
 Training of ASM’s by Regional Head as a Coach / Team Leader.
 Training courses/workshops for team
 Conduct Training Sessions of Salesmen at least once a month at Regional Level.
 Hiring of Quality Sales people is in process inFaisalabad City.
 Re-define roles & responsibilities of every Individual in order to bring ownership and sense
of responsibility.
 Weekly Meeting with Distributors and Sales Team in order to review weekly target closing

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 Chapter # 10

References

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 REFRENCES

Websites:

www.google,com

www.nestle.com

Books:

 Principles of management by Stephen.P.Robbins & Mary Coulter

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