nestle would also like to thank

nestle teacher G.AHMAD RANA

for giving us opportunity to work on this

project.

MR TANVEER AHMADMISS SIDRA SHABBIRMISS SAMEEN ASHFAQ

ADD

MEANING OF NESTLEHenri Nestlé endonestled his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird protecting her young, became the Company’s logo and a symbol of the Company's care

ABOUT NESTLE

NESTLÉ IS THE WORLD'S LEADING NUTRITION, HEALTH AND NESTLELLNESS COMPANY. IT IS COMMITTED TO INCREASING THE NUTRITIONAL VALUE OF NESTLE PRODUCTS WHILE IMPROVING THE TASTE.

WHILE NESTLÉ CORPORATE BUSINESS PRINCIPLES CONTINUE TO EVOLVE AND ADAPT TO A CHANGING WORLD

IN THE 140 YEARS SINCE THEN, THEY HAVE EXPANDED AROUND THE WORLD AND DEVELOPED A RANGE OF PRODUCTS DESIGNED TO SUIT EVERY TASTE, NEED AND CULTURAL PREFERENCE.

BRANDS

“THE NESTLÉ GLOBAL VISION IS TO BE THE LEADING

HEALTH, WELLNESS, AND

NUTRITION COMPANY IN THE WORLD

VISION

MISSION “GOOD FOOD IS THE PRIMARY SNESTLECE OF GOOD HEALTH THROUGHOUT LIFE. NESTLE

STRIVE TO BRING CONSUMERS FOODS THAT ARE SAFE, OF HIGH QUALITY AND PROVIDE OPTIMAL

NUTRITION TO MEET PHYSIOLOGICAL NEEDS. IN ADDITION TO NUTRITION,

HEALTH AND NESTLELLNESS, NESTLÉ PRODUCTS BRING

CONSUMERS THE VITAL INGREDIENTS OF TASTE AND

PLEASURE”

MISSION STATEMENT (PROPOSED)“GOOD FOOD IS THE PRIMARY SNESTLECE

OF GOOD HEALTH THROUGHOUT LIFE. NESTLE STRIVE TO BRING CONSUMERS

FOODS THAT ARE SAFE, OF HIGH QUALITY AND PROVIDE OPTIMAL NUTRITION TO

MEET PHYSIOLOGICAL NEEDS WITH THE BEST TECHNOLOGY AROUND THE GLOBE. IN

ADDITION TO NUTRITION, HEALTH AND NESTLELLNESS, NESTLÉ PRODUCTS BRING CONSUMERS THE VITAL INGREDIENTS OF

TASTE AND PLEASURE THAT IS MATCHED BY NONE. NESTLE WANT TO EXCEL AS MARKET LEADER IN THE INDUSTRY WITH AN ETHICAL CULTURE AND CARE FOR ITS EMPLOYEES.”

STRUCTURE

KEY PLAYEERS

• SHEZAN• HALEEB• ENGRO FOODS• SHAKARGANJ

FOODS

NO OF FACTORIES/OFFICES

HEADQUARTERED IN LAHORE, THE COMPANY OPERATES FIVE PRODUCTION FACILITIES. TWO OF ITS FACTORIES IN

SHEIHUPURA AND KABIRWALA ARE MULTI PRODUCT FACTORIES, WHILE ANOTHER

ONE AT KARACHI IS ALREADY FOR PRODUCTION. ONE FACTORY IN

ISLAMABAD AND TWO IN KARACHI PRODUCE BOTTLED WATER

GOALS/OBJECTIVES

OPENNESS AND CURIOSITY FOR DYNAMIC AND FUTURE 

TRENDS IN TECHNOLOGY

A PERSONALIZED AND DIRECT WAY OF DEALING WITH EACH OTHER. THIS IMPLIES A HIGH LEVEL

OF TOLERANCE FOR OTHER IDEAS AND OPINIONS

COMMITMENT TO A STRONG WORK ETHIC, INTEGRITY, HONESTY AND QUALITY.

NESTLÉ’S BUSINESS OBJECTIVE IS TO MANUFACTURE AND MARKET THE COMPANY’S

PRODUCTS IN SUCH 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

EXTERNAL/INTERNAL

ENVIRNMENT

STEPLE ANALYSISSOCIAL FACTORS

HEALTH CONSCIOUS TREND IN LIFE STYLES

INCREASED PRODUCT DEMAND ON SOCIAL N RELIGIOUS EFFECT.

TECHNOLOGICAL FACTORSPRODUCT TRANSITION

FIRST MOVER ADVANTAGEDIFFERENTIATED PRODUCTS THROUGH

PROPER R&D.ECONOMIC FACTORS

INCREASED PRICE OF RAW MATERIALINCREASING RATE OF INFLATION

SLOW ECONOMIC GROWTH

POLITICAL FACTORPOLITICAL INSTABILITY

POLITICAL PRESSURES TO KEEP PRICE LOW.

ENVIRONMENTAL PRESSUREGREEN ISSUE

ENVIRMENTAL FRIENDLYENERGY DEFICIENCYLEGAL FACTORS

EXCISE DUTY ON IMPORT OF MACHINERY

INCREASE IN SALES TAX RATE

POSTER 5 FORCES MODEL

THREAT OF NEW ENTRANTS

NEW ENTRANTS INTO THE INDUSTRY MUST ATTEMPT

TO SEIZE A PORTION OF NESTLÉ’S MARKET SHARE IN ORDER TO SURVIVE. ESSENTIALLY, NESTLÉ IS CONSTANTLY A TARGET, AND SO THE THREAT OF

NEW ENTRANTS IS MODERATE.

THREAT OF SUBSTITUTE GOODS

DUE TO THE NATURE OF THE INDUSTRY, NESTLÉ IS BESET WITH

THE THREAT OF SUBSTITUTE GOODS. FROM BOTTLED WATER TO LEAN POCKETS, THERE ARE ARRAYS OF SIMILAR PRODUCTS THAT COMPETE DIRECTLY WITH

NESTLÉ. IT IS VITAL FOR NESTLÉ TO CONTINUOUSLY FIND NEW

WAYS TO IMPROVE ITS PRODUCTS BECAUSE COMPETITION IS SO

FIERCE

BARGAINING PONESTLER OF SUPPLIERSDUE TO THE LARGE PURCHASING

PONESTLER OF NESTLÉ, AND BECAUSE THE SUPPLIERS OF AGRICULTURAL

COMMODITIES OFFER A PRODUCT THAT IS FAR FROM UNIQUE, NESTLÉ HOLDS

MORE BARGAINING PONESTLER THAN ITS SUPPLIERS. ASIDE FROM THIS, NESTLÉ

PREFERS TO CREATE AND PRESERVE LONG-TERM RELATIONSHIPS WITH ITS

SUPPLIERS AS THIS HELPS TO ENSURE THE QUALITY OF THE RAW MATERIALS BEING

PURCHASED

BARGAINING PONESTLER OF CUSTOMERS

CUSTOMERS HAVE A LARGE AMOUNT OF BARGAINING PONESTLER REGARDING THEIR

CONSUMPTION OF NESTLÉ PRODUCTS. AS STATED PREVIOUSLY, THERE ARE CLOSE SUBSTITUTES FOR

NESTLÉ PRODUCTS WHICH ALLOWS FOR THE PREFERENCES OF THE CUSTOMER TO BE VERY

INFLUENTIAL. NESTLÉ UNDERSTANDS THE PONESTLER OF THE CUSTOMER AND HAS TAKEN

SPECIFIC STEPS TO MEET THE NEEDS OF ITS PRODUCTS CONSUMERS.

COMPETITIVE RIVALRY WITHIN THE INDUSTRY

THE MODEL PLACES NESTLÉ IN A SOMEWHAT COMFORTABLE POSITION

WITHIN THE FOOD PROCESSING INDUSTRY, WHILE ACKNOWLEDGING

THE THREATS TO ITS MARKET SHARE. FOR

THE FINAL FORCE, THE MODEL DEPICTS A LARGE

AMOUNT OF RIVALRY WITHIN THE FOOD

PROCESSING INDUSTRY.

Key External Factors nestleight Rating nestleighted Score

Opportunities

Few and nestleak competitors in the market 0.12 2 0.24

Disposable income increased by 3.6% 0.07 3 0.21

Consumer expenditure on food has increased by 3.6% 0.09 4 0.36

Population density increased by 2.18% (per sq.km) 0.05 3 0.15

Credit policy can be adopted to increase sales 0.03 3 0.09

Potential in cold dairy market 0.02 3 0.06

All companies contribute only 2% to processed milk market 0.12 4 0.48

Pakistan as 7th largest milk producing country with milk output of 200 billion liters 0.12 3 0.36

Increase in consumer food industry by 14% 0.05 4 0.20

Threats

Engro and Shakarganj as major competitors 0.14 3 0.42

Market segment growth could attract new entrants 0.04 2 0.08

Taste of the consumer has already developed 0.02 2 0.04

Legal & ethical issues 0.01 2 0.02

Economic slowdown can reduce demand 0.01 2 0.02

Effect of seasonality upon sales 0.05 3 0.15

Strong advertisement by major competitors 0.08 3 0.24

Total 1.00 3.02

EFE External Factor Evaluation Matrix

IFE Internal Factor Evaluation Matrix

Key Internal Factors nestleight Rating nestleighted Score

Strengths

Socially Responsible Company 0.03 3 0.09

Nestle products enjoy strong brand image 0.07 3 0.21

Sales force as a major physical resnestlece strength 0.05 3 0.15

Quality product distribution networks in country 0.08 2 0.16

Net Profit increased by 94% in 2009. 0.20 4 0.80

Price earning ratio decreased from 38.9 to 18.8 0.05 3 0.15

Export Sales increased by 48% to PKR 3.3 billion 0.18 4 0.72

nestleaknesses

Lack of awareness among target market 0.04 2 0.08

Nestle milk always stands at last because of low advertisement. 0.09 2 0.18

Revenue from confectionary decreased by 14% 0.08 2 0.16

Low credit sales and profit margin to retailers 0.05 2 0.10

nestleak promotional activities through nestlebsites 0.05 3 0.15

Cant launch expensive brand due to low income groups 0.03 1 0.03

Total 1.00 2.99

CPM MATRIXNestle Pakistan Engro Foods haleeb Foods

Critical Success factors nestleights Rating nestleighted Score Rating nestleighted Score Rating nestleighted Score

  0.0 to 1.0 1 to 4   1 to 4   1 to 4  

Market Share 0.12 3 0.36 2 0.24 1 0.12

Inventory System 0.05 3 0.15 2 0.10 2 0.10

Financial Position 0.20 4 0.80 2 0.40 3 0.60

Product Quality 0.15 4 0.60 3 0.45 3 0.45

Consumer Loyalty 0.07 3 0.21 2 0.14 1 0.07

Relationship with Suppliers 0.03 3 0.09 3 0.09 2 0.06

Global Expansion 0.06 3 0.18 1 0.06 1 0.06

Organization Structure 0.02 3 0.06 2 0.04 1 0.02

Production Capacity 0.05 3 0.15 2 0.10 2 0.10

Advertising 0.15 2 0.30 4 0.60 3 0.45

Efficient cost Management 0.05 3 0.15 3 0.30 2 0.20

Product R&D .05 3 0.15 2 .04 2 .04

Totals 1   3.20   2.56   2.27

SPACE MATRIX

Financial StrengthNestle’s net sales increased by 20% in 2010 as compared to 2009 3Net profit increased by 94% in 2010 as compared to 2009 5Debt equity ratio changes from 63:37 to 66:34 3Price earnings ratio in 2010 was 18.8 as compared to 2009 38.9 5Return on capital employed increases by 40% 4Average financial strength 4

Industry StrengthIncrease in consumer food industry by 14% 5All companies contribute only 6% to processed milk market 4Market segment growth has attracted new entrants to increase profit potential 5Due to ease of entry in market, Engro foods, Shezand foods and Shakarganj are properly utilizing their resnestleces 4Average Industry Strength 4.5

Competitive AdvantageNestle enjoys strong customer loyalty -2Quality product distribution networks in country -1Nestle extended product life cycle is being ensured due to quality brand extension strategy -2Nestle product are market leaders in many product categories -2Average competitive advantage -1.75

Environmental StabilityEconomic slowdown can reduce the demand -2Fluctuating rate of inflation in the country -2Price range of competing products -1Average Environmental Stability -1.75

SWOT MATRIX

BCG

Brands Sales % Sales Profit % Profit % Market Share

% Growth Rate

Milk and Dairy 13993 34 1082 38 100 +15Beverages 7820 19 661 20 85 +10Bottled Water 9054 22 511 17 100 +3Confectionary and Chocolate 1646 4 150 5 31 -15

Baby Food 5350 13 331 11 60 -5Foods and Cereals 3293 8 270 9 40 8Total 41156 100 3005 100 100

BCG…

STARS THE STARS ARE THE HIGH RELATIVE

MARKET SHARE AND HIGH MARKET GROWTH. NESTLE

BEVERAGES I.E. CASH COWS THE CASH COW IS MILO.. HAS TO TAKE MEASURES TO MAKE

THIS PRODUCT AS SDOGSTHE PHARMACEUTICAL PRODUCTS ARE

NESTLE CEREALS QUESTION MARKSTHE QUESTION MARKS ARE THE ICE

CREAMS 

GSM

QSPMAcquisitions

HALEEB FOODSNo Aquisitions

Key factors nestleights AS TAS AS TAS

OPPERTUNITIESFew and nestleak competitors in the market 0.12 4 0.48 2 0.24Disposable income increased by 3.6% 0.07 - -Consumer expenditure on food has increased by 3.6% 0.09 3 0.27 1 0.09Population density increased by 2.18% (per sq.km) 0.05 3 0.15 2 0.10Credit policy can be adopted to increase sales 0.03 - -Potential in cold dairy market 0.02 - -All companies contribute only 2% to processed milk market 0.12 - -Pakistan as 7th largest milk producing country with milk output of 200 billion liters

0.12 - -

Increase in consumer food industry by 14% 0.05 4 0.20 2 0.10

THREATSEngro and Shakarganj as major competitors 0.14

Market segment growth could attract new entrants 0.04 3 0.12 4 0.48

Taste of the consumer has already developed 0.02 1 0.02 4 .08

Legal & ethical issues 0.01 - -

Economic slowdown can reduce demand 0.01 2 0.02 3 .03

Effect of seasonality upon sales 0.05 - -

Strong advertisement by major competitors 0.08

1.00

QSPM(Continued)Acquisitions

HALEEB FOODSNo Aquisitions

Key factors nestleights AS TAS AS TAS

STRENGHTS

Socially Responsible Company 0.03 - -Nestle products enjoy strong brand image 0.07 2 0.14 1 0.07Sales force as a major physical resnestlece strength 0.05 - -Quality product distribution networks in country 0.08 - -Net Profit increased by 94% in 2009. 0.20 3 0.60 1 0.20Price earnings ratio decreased from 38.9 to 18.8 0.05 2 0.10 1 0.05Export Sales increased by 48% to PKR 3.3 billion 0.18 3 0.54 1 0.18

nestleAKNESSES

Lack of awareness among target market 0.04 - -Nestle milk always stands at last because of low Advertisement.

0.09 - -

Revenue from confectionary decreased by 14% 0.08 - -Low credit sales and profit margin to retailers 0.05 1 0.05 3 0.15nestleak promotional activities through nestlebsites 0.05 - -Cant launch expensive brand due to low income groups 0.03 2 0.06 4 0.12

Total 1.00 2.75 1.89

Matrix AnalysisAlternative Strategies Space BCG Grand Strategy Matrix Count

Back ward integration X X 2Forward integration X X 2Horizontal integration X X X 3Product Development X X X 3Market Penetration X X 2Market Development X X 2Related Diversification

Unrelated diversification

Retrenchment

Divestiture

Liquidation

DECISION NESTLE RECOMMENDATION:• CONSIDERING THIS FACT NOW

NESTLE RECOMMENDED NESTLE PAKISTAN TO HALEEB FOOD TO EXCEL AS A MARKET LEADER FOR THE YEAR 2012

HORIZONTAL STRATEGY

REASON BEHIND• NESTLE SA EXPANDS GLOBALLY

EITHER THROUGH ITS OWN BRAND OR THE ACQUISITIONS OF NATIONAL BRANDS, CONSIDERING THIS FACT IT SEEMS A CRITICAL TIME FOR NESTLE SA TO EXPAND THROUGH A NATIONAL BRAND.

CORE COMPETENCIES

UNMATCHED PRODUCT AND BRAND PORTFOLIO –UNMATCHED RESEARCH AND DEVELOPMENT (R&D) CAPABILITY –UNMATCHED GEOGRAPHIC PRESENCE – PEOPLE, CULTURE, VALUES AND ATTITUDE –

CORPORATE CULTURETHANKS TO THE DEDICATION AND

EFFORTS OF NESTLE EMPLOYEES, EVERY DAY NESTLE MAKE A DIFFERENCE TO THE

LIVES OF MANY CONSUMERS AROUND THE WORLD. NESTLÉ HAS A STRONG

CORPORATE CULTURE WHICH UNITES MORE THAN 281 000 PEOPLE [KPI]

WORKING IN MORE THAN 100 COUNTRIES. OVER A THIRD (33.9%) OF

NESTLE WORKFORCE IS LOCATED IN EUROPE, 38% IN THE AMERICAS AND 28.1% IN ASIA, OCEANIA AND AFRICA.

DURING THE GLOBAL FINANCIAL CRISIS, NESTLE HAVE MADE EVERY EFFORT TO

FOCUS ON SUSTAINABILITY AND STABILITY, AND ENSURE NESTLE HAVE APPROPRIATE HUMAN RESNESTLECES FOR BOTH NESTLE

CURRENT AND FUTURE NEEDS.

STRATEGIES UNDER TAKEN AT

CORPORATE LEVEL STRATEGIES

PRODUCT’S GROWTH THROUGH INNOVATION AND RENOVATION (WHILE MAINTAINING A BALANCE IN GEOGRAPHIC ACTIVITIES AND PRODUCT LINES).BUILD BUSINESS BASED ON SOUND HUMAN VALUES AND PRINCIPLES.LONG-TERM COMMITMENT TO THE HEALTH AND NESTLELL BEING OF PEOPLE IN EVERY COUNTRY IN THE SCOPE OF THEIR OPERATIONS.BUSINESS SHOULD BE CONDUCTED BY ADHERING TO THE VALUES AND MANAGEMENT PRINCIPLES OF THE IT IS THE PATH OF A COMPANY TO ACHIEVE A SUCCESSFUL BUSINESSTHINK OF ACQUIRING DISTINCTIVE COMPETENCIES TO BE LEADER IN THE MARKET ORGANIZATION

BUSINESS LEVEL STRATEGY:

LOW COST- LESS PRICE TRANSPARENCY IS

FOLLONESTLED. 

DIFFERENTIATION- TO REDUCE THE RISK OF

COMPLEXITY OF SUPPLY CHAIN AND

LONESTLER ATTRACTIVENESS FOR DISCOUNTERS

FUNCTIONAL LEVEL STRATEGY

-TO ACHIEVE CORPORATE OBJECTIVES

MANAGEMAENT STRATEGIES

HUMAN RESNESTLECE STRATEGIES

INITIATIVES WERE TAKEN SPECIFIC TO ENHANCING PERFORMANCE,FOCUSING ON EMPLOYEES’ CAREER DEVELOPMENT, RECOGNITION ANDINSTILLING A CULTURE ALIGNED WITH NESTLE VALUES.

A NEW PERFORMANCE MANAGEMENT SYSTEM WAS INTRODUCEDWITHIN THE ORGANIZATION TO ENCOURAGE EMPLOYEES TOWARDS HIGHPERFORMANCE AND STRENGTHENED GOAL ALIGNMENT

NESTLÉ PAKISTAN PLACES A PREMIUM ON DEVELOPING AND SECURINGTHE NEXT GENERATION OF LEADERSHIP. TO THIS END, A CUSTOMIZEDPROGRAM CALLED THE NESTLÉ LEADERSHIP DEVELOPMENT EXPERIENCEWAS DESIGNED WITH THE PREMIER BUSINESS SCHOOL OF PAKISTANI.E. THE LAHORE UNIVERSITY OF MANAGEMENT SCIENCES (LUMS

TO STRENGTHEN NESTLE VALUE-DRIVEN CULTURE, NESTLE INVOLVED NESTLE TOP& MIDDLE MANAGEMENT IN AN EXERCISE TO DEFINE THE FRAME OF NESTLE ASPIRED WORKING ENVIRONMENT

NESTLE HISTORICALLY SUCCESSFUL MANAGEMENT TRAINEE PROGRAM IMPROVED APPROACH WAS APPRECIATED AND CONTINUED THIS YEAR AS NESTLE

DECISION MAKING IN NESTLE

NESTLÉ IS AS DECENTRALIZED AS

POSSIBLE, WITHIN THE FRAMEWORK IMPOSED BY

FUNDAMENTAL POLICY AND STRATEGY DECISIONS

REQUIRING INCREASING FLEXIBILITY. OPERATIONAL

EFFICIENCIES, AS NESTLELL AS THE GROUP

MOTIVATIONAL TECHNIQUES

Rewards:

PERFORMANCE DRIVENCOMPETITIVEINCLUSIVEFLEXIBLE BENEFITS

TQM

1)DEVELOP, WITH INPUT FROM ALL PERSONAL, THE CORE VALUES, VISION STATEMENT, MISSION STATEMENT, AND QUALITY POLICY STATEMENT.2) DEVELOP THE STRATEGIC LONG TERM PLAN WITH GOALS AND THE

ANNUAL QUALITY IMPROVEMENT PROGRAM WITH OBJECTIVES.3) DETERMINE AND CONTINUALLY MONITOR THE COST OF THE POOR

QUALITY.4) CONTINUALLY DETERMINE THOSE PROJECTS THAT IMPROVE THE

PROCESS, PARTICULARLY THOSE THAT AFFECT EXTERNAL AND INTERNAL CUSTOMER SATISFACTION

MARKET ANALYSIS

PRODUCT

NESTLÉ IS A FAMOUS GROUP OF COMPANIES. IT IS WELL KNOWN FOR ITS RENDERED SERVICES INFOOD SECTOR.NESTLÉ HAS MORE THAN 70

CONSUMER PRODUCTS IN PAKISTAN.THIER FAMOUS PRODUTS ARE MILK COFFE NOODLES. THEY ALSO

FAVOR READY-TO-DRINK BEVERAGES,

PRICING

NESTLÉ HAS ITS OWN SET OF TECHNIQUES FOR

SETTING THE PRICES OF THE PRODUCT. IT DOES

NOT PRIMARILY FOCUS ON THE COMPETITOR’S

PRICING STRATEGIES. IT EMPHASIZES ON THE

MARKET DEMAND OF THE PRODUCT

PLACE

NESTLÉ MAKES IT SURE THAT ITS PRODUCT IS AVAILABLE AT EVERY

CORNER OF THE COUNTRY REGARDLESS OF RURAL OR URBAN

AREAS. NESTLÉ’S MAIN FOCUS IS TO MAKE THE PRODUCT WITHIN THE ACCESS OF EVERY CONSUMER SO

THAT THE CONSUMER SHOULD HAVE NO DIFFICULTY IN GETTING THE

PRODUCT

PROMOTION

NESTLÉ SETS ITS PROMOTIONAL BUDGET ON ANNUALLY BASIS.

NESTLÉ IS WELL AWAREOF THE

IMPORTANCE OF THE EFFECTIVENESS OF THE PROMOTIONAL PR

OGRAM. IT DESIGNS ITS PROMOTIONAL PROGRAM USING ALL THE AVAILABLE

PROMOTIONAL TOOLS

MARKET SHARE

• FOR 9 YEARS IN A ROW, THE COMPANY HAS WON A PLACE AMONG THE TOP 25 COMPANIES OF THE KSE.

MARKET SEGMENTATION:

GEOGRAPHICALSEGMENTATION

DEMOGRAPHICAL SEGMENTATION

THE COMPANY SEGMENTS ITS MARKET GEOGRAPHICALLY ON DIVISIONAL BASIS. THEY DIVIDE EACH DIVISION IN DIFFERENT ZONE. 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.

•

GEOGRAPHICALSEGMENTATION

DEMOGRAPHICAL FACTOR: IF WE LOOK NESTLE DEMOGRAPHIC

SEGMENTATION THAN WE WILL FIND THAT OUR PRODUCT IS FOR EVERY ONE. PEOPLE FROM ANY AREA, ANY CULTURE, ANY AGE, ANY BELIEF AND ANY INCOME WILL DRINK WATER. IT IS NOT ANY LUXURY ITEM WHICH ISSUED BY A SPECIFIC PEOPLE.

MARKETING AND SALES STRATEGIES

IN ALIGNMENT WITH NESTLÉ’S GLOBAL PRIORITY OF ENHANCING THE DISTRIBUTION NETWORK, AND THE CONCEPT OF AVAILABILITY OF OUR PRODUCTS “WHENEVER, WHEREVER AND HOWEVER” ARE FULLY INTEGRATED INTO OUR DISTRIBUTION SYSTEM

NESTLÉ HAS ALSO EMBARKED ON A JOURNEY OF RURAL PENETRATION THROUGH OUR PPP (POPULARLY POSITIONED PRODUCTS). TO PENETRATE DEEPER INTO NARROW STREETS WHERE IT IS DIFFICULT TO REACH WITH VANS, “MOTOR BIKE OPERATIONS” HAVE BEEN INTRODUCED IN A BID TO OFFER NESTLÉ PRODUCTS TO THE MASSES SO THAT THEY CAN ALSO BENEFIT FROM THE HIGH QUALITY PRODUCTS AT AFFORDABLE PRICES.

THE KEY ACCOUNT TEAM HAS WORKED WITH AN OBJECTIVE TO GENERATE SUSTAINABLE, MUTUAL, PROFITABLE GROWTH FOR NESTLÉ PRODUCTS AND CATEGORIES.

FINANCIAL ANALYSIS

PROBLMES

• 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”

• THE COMPANY HAS A COMPLEX SUPPLY CHAIN MANAGEMENT AND THE MAIN ISSUE FOR NESTLE PAKISTAN IS TRACEABILITY. THE FOOD INDUSTRY REQUIRES HIGH STANDARDS OF HYGIENE, QUALITY OF EDIBLE INPUTS AND PERSONNEL. THE FRAGMENTED NATURE OF THE PAKISTAN MARKET PLACE COMPLICATES THINGS MORE.

• COMPLAINS FROM

EMPLOYEES NOT FAIRLY

FACILITATED. 

• INCREASED TAX RATES 

• UNSTABLE BUSINESS

ENVIRONMENT

• CHANGING OF STANDARDS ARE NOT ENCOURAGED BY EMPLOYEES.

• COMMUNICATION GAP.

STRATEGIES

• EMPLOYEES SHOULD

BE TRAINED ACCORDING

TO THE CHANGING STANDARDS

OF THE ORGANIZATION. 

• COMPANY SHOULD CONDUCT

SURVEY FROM TIME TO TIME

TO ACCORDING TO WHICH

CHANGES CAN BE INTRODUCED

IN THE ORGANIZATION TO STAY

UPDATED IN THE MARKET.

• EMPLOYEES SHOULD BE GIVEN COMPENSATION IN ORDER TO KEEP THEM LOYAL.

• EMPLOYEES SHOULD BE MORE INVOLVED IN DECISION MAKING TO BECOME MORE DIFFERENTIATED.

• 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

IMPLEMENTATION PLAN

• NESTLE SHOULD STRENGTHEN ITS INTERNAL STRUCTURE

• AS PER OUR PROJECT STUDIES, WE ACKNOWLEDGE THAT CURRENT FOOD AND BEVERAGE INDUSTRY IS A STEP IN RIGHT DIRECTION. BUT WE WOULD LIKE TO WIDEN THEIR SCOPE MORE.

• NESTLE SHOULD STRENGTHEN THEIR SUPPLY CHAIN MANAGEMENT SYSTEM MORE TO ENSURE THE IN TIME DELIVERY TO THE CONSUMERS.

• NESTLE SHOULD PROVIDE PRODUCTS TO THE CONSUMERS AT COMPETITIVE PRICES.BEACUSE THERE ARE DIFFERENT COMPETITORS LIKE SOFI WATER N SHEZAN JUICES WHOSE PRICES ARE LESS THAN NESTLE. SO NESTLE SHOULD REVIEW THEIR PRICE POLICY.

• NESTLE SHOULD INTRODUCE OR ALTER THE PRODUCTS WHICH IS NOT VERY POPULAR IN CONSUMERS .FOR EXAMPLE KNOR NOODLES DEMAND ARE MORE HIGH THAN MAGI. SO NESTLE SHOULD REVIEW ITS PRODUCT TO COMPETE IN MARKET.

• NESTLE SHOULD MENTION ITS PRODUCTS SERVING SIZE. BECAUSE ACCURATE SERVING SIZE ENABLE CONSUMERS TO MAKE INFORMED CHOICES.

• NESTLE SHOULD PONDER THE PRODUCTS WHICH HAVE LOW TURNOVER RATE AND THEY NEED TO REPOSITION THEM IN MARKET. SO THAT THEY COULD COMPETE IN THAT RESPECTIVE AREA..

RECOMMENDATIONS

• COMPANY SHOULD FOCUS ON MORE MARKER CAMPAIGNS N ADVERTISEMENTS

• COMPANY SHOULD GIVE MORE EMPOWERMENT TO EMPLOYEES

• COMPANY SHOULD KEEP AN EYE ON FAKE BRANDS TO PROTECT ITS IMAGE.

• KEEP CONCENTRATING ON TQM FOR INCREASED QUALITY OF PRODUCTS.

• COMPANY SHOULD IMPROVE ITS SUPPLY CHAIN MANAGEMENT.

• COMPANY SHOULD INTRODUCE NEW VARIETY OF PRODUCTS DUE TO TOUGH COMPETITION

CONCLUSION

NESTLE HAS ALMOST TRIED ALL OF THE STRATEGIES THERE CAN BE. NESTLE COMPANY HAS EXPANDED INTERNATIONALLY, HELPED COUNTRIES’ ECONOMIES GROW, BE ENVIRONMENTALLY CONSCIOUS AND CREATE JOINT VENTURES WITH OTHER COMPANIES IN WHICH ENHANCED NESTLÉ’S AND THESE COMPANIES’ PERFORMANCE POSITIVELY. .NESTLE HAS GOOD IMAGE IN MIND OF CONSUMERS AND LOOK FORWARD TO CONSUMERS TO LOOK FORWARD TO TESTING CHALLENGING AND REWARD.

REFERENCES

• www.nestle.com• www.ask.com• www.wikianswer.com• Mr. Ashfaq hussain zahid• www.wikiepedia.com• www.presentermedia.com